Burberry Group PLC
BRBY: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 1,132.00 | Rfjltl | Jgsktvql |
Burberry: Weak Sales Trends and CEO Departure Weigh on Shares, Which We Still See as Cheap
We are reducing our fair value estimate for narrow-moat Burberry to GBX 1,330 per share from GBX 1,570 to reflect weaker expectations for the current year following a disappointing first quarter, as well as a slower longer-term recovery in sales. We still see value in the shares. The luxury sector is going through one of its downcycles, which historically haven't persisted for longer than one or two years, so we still see potential for Burberry to recover brand momentum.